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VAT: Normal VAT invoices

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  • May 18, 2020 at 1:04 am
    VAT: Normal VAT invoices 2
    Noah098
    Participant

    Sir, in our study text there’s a statement which states that “No invoice is required if supply is to a Non-VAT registered customer.” Does this statement mean that if a trader is making std. rated supplies to a non-VAT registered customer, he doesnt have to send him an invoice? The customer may not be able to claim Input VAT, however for record-keeping purposes it should be required as the company has to pay Output VAT for the sale made(regardless of whether its to a non-VAT registered customer or registered customer).

    May 18, 2020 at 1:11 am
    VAT: Normal VAT invoices 2
    Noah098
    Participant

    In simple words sir can you explain why a company does not need to issue VAT invoice to a non-VAT registered customer? Because my understanding is that, that the customer has to pay VAT charges, however will not be able to claim it back from HMRC as an input VAT(as it is not registered for VAT purposes), so in order to know the amount of VAT payable even a non-VAT registered customer needs an invoice.
    So can you shed some light on this topic?

    May 20, 2020 at 10:31 am
    VAT: Normal VAT invoices 4
    Tax Tutor
    Keymaster

    When you buy something in a shop do they issue you with a full VAT invoice – answer – no.
    This is a totally separate issue to the fact that the trader must account for all the sales they make and the output VAT thereon

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